In return for handing over day-to-day operations, the town received a $23 million upfront payment and will get $2.3 million each for the first five years and $1.1 million annually for the next 20 years with additional payments if an expansion of the landfill is approved by the state Department of Environmental Conservation.

Though Conners is a Democrat, he has run for office on the Republican line and has sometimes feuded with other members of his party, including former Albany County Executive Michael Breslin. Conners and the other parties to the suit argued the deal should have been subject to a permissive referendum, allowing voters to gather signatures to put the contract on the ballot.

In a decision received by the town Monday, state Supreme Court Justice Roger McDonough ruled the deal was legal and did not require the public to be allowed to seek a referendum.

McDonough said New York's General Municipal Law allows towns to enter into a lease for a term not to exceed 25 years for a solid waste management facility. That language in the law specifically says it prevails even if there is other language in the law regarding the length and terms of contracts a community can reach, he wrote.

"The petition's legal conclusions are flatly contradicted by the documentary evidence," McDonough wrote. "The Court cannot read Town Law ... as imposing a requirement for a permissive referendum in this matter."

McDonough also ruled that the legal challenge to the decision did not fall into one of three types of claims the law allows: that the deal was not authorized under the law, that portions of the law were not complied with, or that a conflict of interest exists.

Supervisor Paula Mahan hailed the decision and criticized Conners for filing the suit.

"This was clearly political on Mike Conners' part," Mahan said. "He was trying to take the landfill from the town of Colonie to solve his problems in the county. It was the best decision for the town of Colonie."

Mahan said Conners "should be ashamed of himself" for filing the lawsuit.

"We knew we were doing the right thing," she said. "There was no question about it."

Conners said he still opposes the landfill deal and denied any political intent to filing the lawsuit. He would prefer a regional solution to landfill issues, he said.

"I still think Paula is giving away the biggest asset the town has for pennies on the dollar," he said.

Sal Ferlazzo, attorney for Conners and the other residents, vowed to appeal.

"The court misunderstood the specific requirements in the law that requires a permissive referendum," he said. "Clearly we have a strong disagreement with the court."